Tenders open for Granger Bay site

2016-09-20 06:00

The tender for the long-term lease of the City of Cape Town’s Granger Bay Boulevard site next to the Cape Town StadiumThe City of Cape Town has been issued.

The construction value alone could be about R600m.

Recently, business rights were granted for the Cape Town Stadium and this vacant gravel site, which is used for overflow parking. It is expected that the development of this property will be a catalyst for the commercialisation of the Stadium Precinct which holds investment and job creation benefits, says the City’s deputy mayor, Ian Neilson.

The City will retain ownership of this property as the development and management of the property will be done on the basis of a 25-year lease.

Approximately 29 000m² of space will be allowed to be developed. A height restriction of eight storeys will apply.

“One way to enhance the sustainability of the Stadium Precinct is by encouraging greater public usage. This tender aims to do just that as the site is located on transport routes and in close proximity to the CBD,” Neilson says.

“It is expected that the development of the site will create a number of construction and sustainable new jobs, specifically with regard to building cleaning, security, landscaping services and retail.”

Based on the City’s in-house valuation, the market rental value of this property is estimated to be either an upfront payment of R100m or a monthly rental of R750 000.

This rental is valid for a proposed lease term of 25 years, with an escalation of 8% per annum.

All future developments on the property would need to adhere to the zoning conditions, including infrastructure requirements.

A future lessee will be responsible for the development of the property, the upkeep and maintenance, and the security of the buildings on the site.

Design guidelines have also been proposed by the City’s Spatial Planning and Urban Design Department to ensure that the proposed construction on the site provides a good visual fit with the existing buildings in the area.

V An optional briefing session for interested potential tenderers will be held on Thursday 22 September in the Cape Town Civic Centre. Contact Jason Toay on 021 400 4981 or send an e-mail to Jason.Toay@capetown.gov.za.

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